Hierarchical Assignments: Stability and Fairness
We study a simple model of the job market, where workers are assigned to employers. We specify conditions under which the market is hierarchical in a natural sense. For such hierarchies, we can state explicit values for the earnings in the worker-optimal and employer-optimal solutions. This is a discrete analogue to the Ricardian differential rent model of Sattinger (1979). We discuss the compatibility problems between fairness and stability of earnings and assignments and argue for a certain solution.
|Date of creation:||27 Oct 1997|
|Publication status:||Published in Mathematical Social Sciences, 2000, pages 109-118.|
|Contact details of provider:|| Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden|
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